Which of the Following Determines the Amount of Money the Banking

question 17

Multiple Choice

Which of the following determines the amount of money the banking system as a whole can create?

• A)the quantity of bank reserves
• B)the quantity of vault cash held by banks
• C)the gold reserves held by the Federal Reserve
• D)the limit on profits by banks imposed by the U.S.Congress

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Definitions:

Nonrenewable Resource

A natural resource that cannot be replaced once it is consumed, such as oil, natural gas, and coal.

Gold Ore

A mineral or rock from which gold can be profitably extracted, typically characterized by the presence of gold particles or veins within the rock.

Forests

Large areas covered predominantly with trees and underbrush, playing a critical role in biodiversity and the environment.

Market Rate Of Interest

The prevailing interest rate available in the open market, influencing the cost of borrowing and the return on savings.